For Illinois homebuyers, a bargain price on a fixer-upper can look tempting – until they learn what “as-is” really means. Illinois sellers may assume that labeling a property as-is allows them to walk away clean with no worries about disclosure. It is important for sellers and buyers alike to have a full understanding of what “as-is” really means, and to involve a real estate lawyer in any transactions.
Buyers could inherit costly problems in an as-is sale, while sellers must understand that labeling a property “as-is” does not erase the duty to be honest about known defects. Whether you are
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Pros and Cons of Considering a Short Sale Purchase in Wisconsin
In today’s housing market, Wisconsin homebuyers may turn to short sales as a potential way to become homeowners. Short sales are homes that are sold for less than the current owner owes on his or her mortgage. The sale must have the lender’s approval and usually occurs when a homeowner is in financial distress and can no longer make their monthly mortgage payments.
The lender, in an effort to avoid costly foreclosure proceedings, will agree to accept less than is owed on the mortgage. While a short sale can be a good real estate move to get more house for
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Business Formation and LLCs
Starting a new business in Illinois is much more complicated than choosing a name and opening your doors. One of the most important – yet often overlooked – issues involves selecting the most beneficial legal structure. In many cases, the Limited Liability Company (LLC) offers the best balance between tax efficiency, flexibility, and liability protection.
The Illinois Limited Liability Company Act (805 ILCS 180/) provides new business owners with information on filing rules, fees, and management requirements for an LLC. An experienced DuPage County, IL business formation lawyer can guide you through the process, whether you are forming
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Illinois Foreclosure Deficiency Judgments Explained
Many Illinois homeowners believe that once their home has been foreclosed on and sold, they no longer have any financial obligations related to the home. Unfortunately, that is not always the case. Under Illinois law, mortgage lenders may pursue a deficiency judgment. This is a court order requiring the borrower to pay the remaining balance if the foreclosure sale does not cover the full amount of the mortgage debt.
Whether or not a bank can or will sue depends on the type of foreclosure, the sale price, and how the judgment was entered. A Round Lake, IL foreclosure defense attorney
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Illinois Real Estate: Stigmatized Property Law
Suppose someone died in the house you are about to buy, or that it was once the hideout for a notorious criminal. Or, what if the house is allegedly haunted, or there was a violent crime that occurred in the house? Would you want to know these things? Would you feel as though you were entitled to know? Under the Illinois Residential Real Property Disclosure Act (765 ILCS 77), only physical defects and material conditions must be disclosed to buyers.
Under the Illinois Real Estate License Act (225 ILCS 454/), brokers are required to be honest,
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What Illinois Real Estate Buyers Must Know About FIRPTA
If you have ever bought or sold property, you know how challenging it can be. But what about when unexpected tax laws are part of the deal? A federal law known as the Foreign Investment in Real Property Tax Act (FIRPTA) requires buyers to withhold a portion of the sale price when purchasing from a foreign seller.
Should you fail to comply with this Act, you could be on the hook for tens of thousands of dollars in unpaid taxes. Whether you are a buyer, seller, or real estate professional, you must understand FIRPTA’s role to avoid costly mistakes. It
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When Community Property and Equitable Division States Collide
Where divorce and death are concerned, states are either community property states – where all marital assets are divided 50/50 regardless of extenuating circumstances – or equitable division states, where marital assets are divided fairly but not necessarily equally. When neighboring states have different laws, it can make estate planning much more complex if property is owned in each state.
While Wisconsin is the only Midwestern state that follows community property rules, it is also the only state that has a bit of a hybrid situation, with courts directed to divide marital property “equally, but with discretion.”(Section 767.61).
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Do Illinois Renters Have Rights During Foreclosure?
Foreclosure may sound like a problem only for the homeowner. Unfortunately, that is not always the reality. If you are renting a home, and your landlord’s property goes into foreclosure while you are living there, you may be left with nothing but questions. Can you be forced to leave your home? Are you still required to pay rent? Is your landlord the bank, the buyer, or is there still a landlord?
An Illinois foreclosure can be disruptive, to say the least. That said, there are certain protections in the state provided to tenants to keep them from being blindsided by
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How Illinois Bankruptcy Works: Chapter 7 vs. Chapter 13
It is easy to feel overwhelmed when your monthly bills are outpacing your income. Over time, this may result in constant creditor calls, adding more stress to the situation. Perhaps you have considered bankruptcy, but never really pursued the idea. Many people still feel there is a stigma surrounding bankruptcy, while others do not really understand how bankruptcy works, so they have not actively pursued it as a financial solution.
Bankruptcy can help you get back on the right financial track, providing an immense sense of relief. Perhaps you have determined that bankruptcy may be the best financial solution for
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Radon Disclosure: A Legal Obligation That Surprises Sellers
Illinois sellers may believe they have done everything right: they prepped their home for sale, ordered a home inspection, and made cosmetic upgrades. Now they are ready for showings and negotiating offers, yet many sellers in the state are unaware that they may have overlooked obligations involving radon. Radon is a naturally occurring radioactive gas associated with significant health risks, and it is something that neither buyers nor sellers may be aware of during real estate transactions.
Home sellers in the state are legally obligated to disclose any known radon hazards to potential buyers. If the home seller is aware
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Can Robo-Signed Documents Provide a Foreclosure Defense?
In the wake of the 2008 housing crisis, it came to light that bank employees or third-party contractors had signed thousands of foreclosure affidavits and mortgage documents without reviewing them. In turn, this led to wrongful foreclosures across the country. While some safeguards were put into place following this dark time, some Illinois homeowners may still face foreclosure cases built on questionable paperwork.
Knowing how to spot and challenge robo-signed documents can make all the difference between losing a home to foreclosure and keeping it. If you are facing foreclosure in Illinois, you should never assume the bank’s paperwork is
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Preventing Illinois Inheritance Disputes in Blended Families
Approximately 40 percent of the families across the United States are considered “blended” families. This means that one or both spouses have children from prior relationships. While blended families can be a blessing, they can also lead to complex inheritance issues. Mixing children from previous marriages and new spouses can lead to an emotionally charged situation when the subject of estate planning arises.
Unfortunately, disputes can strain or even destroy family relationships. Proactive estate planning is crucial for avoiding these disputes. Several practical steps can be taken to ensure your estate is distributed according to your wishes. Speaking to a
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How Illinois Treats Tiny Homes in Real Estate Deals
As a result of the current housing crisis, tiny homes are gaining popularity, despite their size (the average tiny home is about 10 times smaller than the average home). While tiny homes are certainly more affordable, with the average price at $67,000, they cost 38 percent more per square foot than full-sized homes. Almost three-fourths of tiny homeowners have no mortgage, as compared to only 29 percent of traditional homeowners with no mortgage.
The national average cost of a conventional home is $272,000. A 30-year loan at 4.25 percent interest brings the cost of that home to $481,704, which is
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Do You Own the Sky? Air Rights and Real Estate in Illinois
If you have never purchased property in a big city, you may not have heard the terms “air rights” or “vertical development.” However, in dense areas like Chicago and New York, these terms are familiar to all real estate buyers and developers. Even if you are familiar with air rights, you may not think these rights have anything to do with residential real estate.
This is where you might be wrong. Property values in crowded cities depend on more than square footage – they can also hinge on what is above your roofline. Air rights encompass the ability to use
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Joint Property, No Ring: Risks of Buying a Home with a Partner
Buying a home with a romantic partner can feel like a natural step when you are living together and building a future. However, in Illinois, purchasing property as an unmarried couple comes with significant legal risks. While married couples are protected by Illinois divorce laws and the equitable distribution of marital assets (750 ILCS 5/501), unmarried partners do not have those same legal safeguards should the relationship end.
If you and your partner are not married and have no clear property agreement, disputes over financial contributions, ownership rights, or selling the property can escalate quickly into an expensive
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Can Foreclosure Affect an Illinois Reverse Mortgage?
Increasingly, older Americans are choosing reverse mortgages, typically to supplement fixed incomes from Social Security or pensions that are insufficient to cover basic expenses. A reverse mortgage allows elderly homeowners to tap into the equity built up in their homes while remaining in their homes. Reverse mortgages are often used to pay for home repairs, improvements, and maintenance, or to cover substantial medical expenses.
Reverse mortgages can be complex and expensive when all the fees are taken into account. The loan becomes due when the borrower dies, sells the home, or permanently relocates. If the borrower dies, the heirs will
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